While Chrome Capital does not identify itself as a subprime lender, the powersports financing company offers leases across the credit spectrum — including thin-file, Peter Wasmer, Chrome’s founder and chief executive, told Powersports Finance.
About 20% to 25% of Chrome Capital’s lessees are prime, 60% are middle credit, and the remaining percentage are subprime or below, he added. “It [thin file] is one of our specialties, actually,” Wasmer said. “New riders and thin files are what we do regularly.”
“Our philosophy is ‘everybody rides,’” he said. “We wrote our underwriting box to accommodate that [philosophy] and it’s worked out quite well. The toughest guys to get on the bike are the ones who don’t have tier one credit — those who are right in the middle of the credit spectrum — and that happens to be our sweet spot.”
Chrome Capital offers leases on preowned Harley-Davidson motorcycles and has an exclusive arrangement with Polaris for leasing new Victory and Indian motorcycles with a select number of dealers, Wasmer said.
Harley-Davidson, Indian, and Victory motorcycles “are pretty expensive hardware, and not everybody can afford to plunk down cash or get approved for a loan,” he said. “We provide an excellent alternative to get more people on more bikes.”
Naples, Fla.-based Chrome Capital currently services 750 dealers, with plans to add another 200 to its roster in 2016. The company doubled its year-over-year lease originations in 2015, and projects to double its originations again in 2016.